CIPD support for brown’s borrowing

The CIPD has said it supports the proposals announced by Gordon Brown in his
pre-budget speech to increase borrowing and boost skills development.

The Chancellor came under fire last week after he revealed plans to increase
borrowing by £9bn to £20bn to compensate for lower tax revenues and to maintain
spending on public services.

John Philpott, the CIPD’s chief economist, believes the Chancellor has made
the correct choice. "The decision to increase borrowing to support public
spending increases the chances of meeting the growth forecast without an
increased risk of going into recession," he said.

The CIPD also backs proposals for a Modern Apprenticeship Taskforce to
co-ordinate and promote the development of these schemes. And Philpott believes
one of the reasons the apprenticeship taskforce is being formed is the
increasing recognition of the need for greater emphasis on vocational skills
relevant for the workplace.

He is in favour of plans outlined by Brown to invest £130m in extending
employer training pilot projects for a second year, and proposals for improved
links between business and colleges.

The CIPD also supports the Government’s aim of improving the work permit
scheme and extending the highly skilled migrant programme to help UK employers
meet specific skills shortages.